KUALA LUMPUR (March 5): CIMB Research has maintained its Neutral rating on Malaysia and end-2013 KLCI target of 1,640 points, and said the killing of 8 policemen since last Friday by armed Sulu intruders in Sabah had raised concerns about the potential impact on various stocks and sectors.

In a strategy note Tuesday, CIMB Research said the plantation sector has the highest exposure while the transport, construction and property sectors could be affected too.

“It is uncertain whether the Sulu militia problem in Sabah will have any impact on the timing of general elections but elections must be held no later than end-June.

“Maintain Neutral weighting on Malaysia and end-2013 KLCI target of 1,640 points. We continue to prefer defensive sectors such as brewery, REITs and utilities in the pre-election period,’ it said.